Hong Kong Labour Ordinance

Complying with regulations and managing legal exposure.

Employment (Amendment) Ordinance 2007 (713 Ordinance)

With Backstage, statutory holiday pay, annual leave pay, sickness allowance, maternity leave pay, end of year payment, and wages in lieu of notice can be calculated by reference to the average daily wages earned by an employee during the 12 months immediately preceding the statutory holiday, first day of the annual leave or other specified dates, fulfilling the 713 ordinance.

01

Minimum Wage Ordinance

Statutory Minimum Wage (SMW) has come into force since 1 May 2011. With effect from 1 May 2013, the SMW rate is revised from $28 per hour to $30 per hour in Backstage. The system will show alert if anyone falls below $30 per hour.

02

Continuous Contract of Employment (418 Rule)

An employee who has been employed continuously by the same employer for four weeks or more, with at least 18 hours worked in each week is regarded as being employed under a continuous contract. Backstage helps you check if your employees reach this condition.

MPF Mandatory Contribution

Employer’s contribution is 5% of monthly relevant income, up to a maximum mandatory contribution of $1,250 per month, calculated from the first day of employment. Employee’s contribution is 5% of monthly relevant income (up to $25,000) as a mandatory contribution (no contribution is required for a monthly relevant income under $6,500), waived for the first 30 days of employment (“contribution holiday”) and the first incomplete payroll cycle immediately following the contribution holiday. Backstage can help you handle these easily.

04

Annual Leave Entitlement, under the Employment Ordinance, Cap. 57

An employee is entitled to 7 days’ annual leave with pay after serving every period of 12 months under a continuous contract, and will increase progressively to a maximum of 14 days according to his length of service. Backstage will make sure your company’s leave policy will be the same or better than this.

05

Sick Leave Entitlement, under the Employment Ordinance, Cap. 57

An employee can accumulate paid sickness days after having been employed under a continuous contract. Paid sickness days are accumulated at the rate of two paid sickness days for each completed month of the employee’s employment during the first 12 months, and four paid sickness days for each completed month of employment thereafter. Paid sickness days can be accumulated throughout the whole employment period, but shall not exceed 120 days at any one time. Backstage will help keeping the sick leave balance of your staffs.

06


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